Why High-Frequency Trading Infrastructure Surging Across the Globe

1. Why High-Frequency Trading Infrastructure Surging Across the Globe High-frequency stock trading is gaining traction in various asset classes throughout the world, but due to poor infrastructure, heavy regulation, and opposition from established interests, the development of high-frequency stock trading around the world is slow. In markets like Asia, it takes seconds to execute an equities order. It is a lifetime for a trader that uses advanced algorithms to trade hundreds if not thousands of shares in a millisecond with the sole aim of profiting through price imbalance and market-making. High-frequency trading is responsible for 60% of U.S. stock trading, and its effects rippled over much of Europe and other emerging markets. Latin America in particular. It is also breaking into futures, options, and foreign exchange markets. 3 challenges that will shape capital markets in the future ● ● ● An open and democratic market Open access to wealth creation opportunities Data and cybersecurity concerns An open and democratic market Recently, A user on Reddit’s WallStreetBets managed to raise the stock price of several companies. That cost many hedge funds and investors who bet against the same stock. In the past, capital market services were accessed only by institutional investors and individuals that had time and resources to manage their investments. Market data is readily available, and new technologies have significantly decreased the cost of trading and other entry barriers. Open access to wealth creation opportunities Private markets and Capital Markets Consulting Services were historically available only to investors and big institutions. The risk management and sophisticated elements motivate the exclusive access to capital market advisory services. With the development of new products, retail investors can allocate alternate sources of financing in the private market. Data and cybersecurity concerns Capital market services have become more digital as traders demand flawless access to the information and faster execution speeds. These improvements also bring concerns around cybersecurity and the safety of the data.

2. However, these issues remain to develop the businesses responsibly while minimizing risks by making better use of data. High-frequency trading infrastructure is surging across the globe because of the ease and convenience it provides. But it comes with a few challenges that the industry has to come together to tackle.